GET PAID & RECOVERY

MSE Status Declaration to Buyer (Udyam)

Send once to each buyer at the start of the relationship (and again when your Udyam classification changes). It puts the buyer on notice of Section 15 and of the tax disallowance it faces for late payment, which is the strongest nudge to pay on time.

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3 of 8 required fields filled

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Your business name *

Your registered address *

Your GSTIN

Authorised signatory *

Signatory designation

Udyam Registration Number *

ClassificationSection 43B(h) protects Micro and Small only, not Medium.

ActivityRetail and wholesale traders can register on Udyam only for priority-sector lending and do not get the MSMED Act delayed-payment protection.

Proposed credit period (days, max 45)

Recipient name *

Attention (person / designation)

Recipient address *

Place *

Date *

Laws this relies on

MSMED Act, 2006 · Section 15Buyer must pay a micro/small supplier by the agreed date, never later than 45 days from acceptance.
MSMED Act, 2006 · Section 16Late payment attracts compound interest at three times the RBI Bank Rate with monthly rests.
Income-tax Act, 1961 · Section 43B(h)Buyer cannot deduct the expense until it actually pays a micro/small supplier within the Section 15 time limit (carried into the Income-tax Act, 2025).

How to execute

Sign on your letterhead and send. No stamp paper needed.

Attach a copy of your Udyam Registration Certificate. Note: protection generally covers supplies made after you obtained registration.

Click anywhere in the letter to edit it. Changes to the form keep flowing in.

This is a general template, not legal advice. Laws, stamp duty and procedures vary by state and change over time — have a qualified advocate review it for your facts before signing or sending.